Nonprofit health plans sue Texas over $10B Medicaid contracts

Nonprofit health insurers claimed Texas health officials violated state law by awarding multibillion-dollar Medicaid contracts to only for-profit payers, according to a lawsuit cited by The Texas Tribune.

Two health plans owned and operated by hospital districts — Community Health Choice in Houston and Community First Health in San Antonio — argue state officials broke a provision of law ensuring that nonprofit health plans affiliated with hospitals are included in the contacts.

Instead, the $10 billion contracts were awarded to only for-profit payers. In response to claims from the nonprofit health plans, the Texas Health and Human Services Commission said the nonprofit plans either didn't offer the best value or didn't meet minimum requirements to satisfy the law.

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